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Posted on 08/10/2011 11:20:41 AM PDT by Red Badger
The Obama administration may turn thousands of government-owned foreclosures into rental properties to help boost falling home prices.
The Federal Housing Finance Agency said Wednesday it is seeking input from investors on how to rent roughly 250,000 homes owned by government-controlled mortgage companies Fannie Mae and Freddie Mac and the Federal Housing Administration. All of the homes are foreclosures.
The U.S. government rescued the two mortgage giants in September 2008 and has funded them since the financial crisis. Fannie and Freddie own or guarantee about half of the nation's mortgages and nearly all new mortgages.
Converting the homes into rentals may reduce "credit losses and help stabilize neighborhoods and home values," said Edward DeMarco, acting director of the Federal Housing Finance Agency, which oversees Fannie and Freddie.
Homes in foreclosure sell at a 20 percent discount on average, which can hurt prices of surrounding homes.
It also might meet the growing demand for rentals. Since the housing meltdown, nearly 3 million households have become renters. At least 3 million more are expected by 2015, according to census data analyzed by Harvard's Joint Center for Housing Studies and The Associated Press.
A federal "request for information" released Wednesday included an option for previous homeowners to rent out the homes or for current renters to lease to own. Private investors could also be allowed to oversee the conversions. Officials are also mulling whether to implement a program in metro areas hit hardest by foreclosures and in those with high demand for rental housing.
The homes include single-family homes and condominiums. The deadline for responses is Sept. 15.
(Excerpt) Read more at hosted.ap.org ...
The ‘Penumbra’ Clause...........Can’t you see it?...........it’s there, plain as night................
He’d love to, if he can get away with it.
I doubt many of the tenants could afford the local and state property taxes.
I say that THIS has been the plan since before the mortgage crash.
THIS was the plan when Fannie and Freddie were making all of those terrible loans they knew would not be repaid.
After all, it is just not fair that some people live in nicer neighborhoods than others and that some people will NEVER be able to own or even rent in certain neighborhoods.
You can be sure there will be NONE of these rental houses in the neighborhoods of ANY member of congress or the president.
Section 8 beachfront condos in Florida. Section 8 ski chalets in Colorado.
How long before our government starts seizing homes and giving them to the “takers” in our society?
Zimbabwe comes to mind.
Obamugabe...............
Once the government gets in there, even with the best of intentions, it is only a matter of time before it becomes another entitlement.
Everyone should have learned that a long time ago, no need to learn more.
Little ACORNs of HOPE in every neighborhood...
In this state, you have to be in arrears on taxes for four years, IIRC.............
Looks like they are creating a situation where uncle sugar owns the house, puts their voters in those houses, then pays their rent as well.
Another scary issue is that Freddie and Fannie own 1/2 of the existing mortgages and all of the new mortgages.
The marxists in dc would never politicize that now would they?
And I thought my landlord sucked...
I was waiting for this. It was only a question of when. Now you can no longer move from the ghetto it will move to you. Imagine going off to work and leaving your family at home with gangsters next door. Since their rent will be paid, food paid, babysitting, cell phone, internet, cable and walking around money no need to leave the hood. Invite all their friends from the old hood for a visit to this fine crib. Where will you go? Every neighborhood will be filled with loafers looking for a score.
How does that work exactly??? I realize that some may be living in a strange bizarro-Obama-land, but economics doesn't work that way. Home prices are falling because there is no demand, either from lack of employment, because people are simply content to live in their state and some may even consider any upgrade to be too risky in the present environment.
Would some Freeper/s please throw some chlorine in the gene pool already.
Probably correct. And after reading some of the comments, I’m more of the opinion now that it’s not a good idea. I’m not one of those guys who says “If they’re for it, then I’m against it”, but I can be reasoned with. What a mess we’ve allowed this country to become.
Housing prices will continue to fall as the bubble further crashes until they reach a sustainable price. Inflation adjusted, historically that has been around 100K in today’s prices for the average home (Roughly 2x one’s gross income). Don’t expect home “values” to rise or remain the same, they were in a bubble for the last 15 years or so, and now it’s still collapsing. Housing payments, be they rent or mortage historically have been unaffordable above 25% of ones monthly income. As that drops, so too will the price of housing, unless it’s artificially bolstered yet again.
In any event, this effort by the government is fascism first and foremost.
1. More slavery.
2. Twenty hillbillies will move into one of the houses in your HOA with dead vehicles, refrigerators as lawn ornaments, and young men leering at your daughters. ;-)
3. Real estate is dead for decades, until we have new leadership in business, government and academia. Give it up.
How is that any different than where I live now?.............
” Now you can no longer move from the ghetto it will move to you. Invite all their friends from the old hood for a visit to this fine crib. Where will you go? Every neighborhood will be filled with loafers looking for a score.”
Exactly, this will kill home ownership.
Who wants to own a home now, with this being the future?
And just who is going to get these homes?....Mansions for the poor and your property values thru the floor.....
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